Substantial investments in oil industry infrastructure began with the discovery of oil in commercial quantities. Following decades of exploration by Shell D‘Arcy and its discovery of commercial quantities of oil, there was suddenly a change in dynamics-
The first export terminal was commissioned at Bonny in 1961. Several other terminals followed, presently there are six export terminals; Forcados and Bonny terminals owned and operated by Shell. Oloibiri and Escravos owned and operated by Chevron, Qua Iboe owned and operated by ExxonMobil and Brass terminal owned and operated by Agip.
Alongside these export terminals there are several Floating Production Storage and Offloading (FPSO) installed in Nigeria. So far, about ten FPSO’s have come on-stream
Approximately 1650 km of crude oil pipelines transport crude oil within the country.
This is about 16X the length of Lagos-Ibadan Expressway
Nigeria has a total of four refineries, with a combined refining capacity of 445,000 barrels per day (bpd).
The first and the oldest refinery is located in Port Harcourt (Rivers State) and was commissioned in 1965. It had an initial capacity of 35,000bpd, but was later expanded to 60,000bpd of light crude. Port Harcourt is also home to a second refinery, which has the capacity to refine 150,000bpd.
The third refinery in Nigeria was commissioned in Warri (Delta State) in 1978, with an initial capacity of 100,000bpd, but was expanded in 1986 to 125,000bpd of light crude.
The fourth and largest inland refinery in the country is located in Kaduna (Kaduna State). It was commissioned in 1980, with an initial capacity of 100,000bpd and later upgraded in 1986 to 110,000bpd.
The Kaduna refinery is supplied by 600km of oil pipelines from the Niger Delta oil fields. The refinery was installed to refine heavy crude and therefore is used to refine mostly imported crude since Nigeria’s crude type is lighter.
Of the total domestic crude oil allocated for local refining, only about 20% is refined for domestic consumption. Although some of the crude is resold as swap oil, the revenues and records from these swaps remains hard to account for.
When crude oil goes through the refining process, about forty-two products are gotten from it. Some of these petroleum products are Premium Motor Spirit (PMS) or Petrol, Automotive Gas Oil or Diesel, Dual Purpose Kerosene (DPK) or Kerosene.
Petroleum products are largely imported by independent oil marketers, stored in tank farms and transported through tankers around the country to be sold to consumers.
This is a brief analysis of the country’s crude oil infrastructure, for further details